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No end in sight to record-setting government shutdown 11:58 AM ET Mon, 14 Jan 2019 | 01:49Going forward, federal workers could miss more paychecks and people who receive government assistance for food and housing may lose it. The shutdown will continue to delay some economic reports and could even disrupt tax returns. Here are some of the key upcoming dates to watch if nine federal departments, or about a quarter of the government, remain closed:

Going forward, federal workers could miss more paychecks and people who receive government assistance for food and housing may lose it. The shutdown will continue to delay some economic reports and could even disrupt tax returns.

Here are some of the key upcoming dates to watch if nine federal departments, or about a quarter of the government, remain closed:

Fed Chairman Jerome Powell reiterated on Thursday the U.S. central bank has the ability to be patient on monetary policy given that inflation remains stable. Fed Vice Chair Richard Clarida also struck a dovish tone, underscoring the central bank’s willingness to remain patient on the issue of raising rates. “The Fed Funds Rate is no longer accommodative but neutral, and more importantly, positive in real terms. In line with a more patient Fed, the U.S. dollar’ rise will become gentler,” said Phi

The dollar fell versus its major peers on Friday, as investors grew increasingly confident that the U.S. Federal Reserve may hit the pause button on monetary tightening this year.

Fed Chairman Jerome Powell reiterated on Thursday the U.S. central bank has the ability to be patient on monetary policy given that inflation remains stable. Markets are now pricing in no further rate hikes by the Fed this year.

“The market has almost priced in that the Fed will not be hiking rates any further. To get the dollar weaker, market now has to expect a rate cut…I don’t see that happening,” said Sim Moh Siong, currency strategist at Bank of Singapore.

Sentiment was still slightly cautious in Asian trade on a lack of concrete details from the United States and China on any progress in their trade dispute after a three-day meeting in Beijing. The two sides are more than halfway through a 90-day truce agreed by U.S. President Donald Trump and his Chinese counterpart Xi Jinping.

Traders still remain optimistic that a trade deal between the world’s largest economies will eventually materialize. U.S. Treasury Secretary Steven Mnuchin said late on Thursday that Chinese Vice Premier Liu He will “most likely” visit Washington later in January for trade talks.

Bank of Singapore’s Sim added that currencies such as the Australian dollar, a gauge of risk appetite, and the New Zealand dollar, are likely to see further gains if a U.S.-Sino trade deal is reached.

The Aussie dollar was last at $0.7201, gaining 0.2 percent versus the greenback, while the kiwi firmed 0.44 percent to $0.6808.

The dollar also fell 0.47 percent versus the offshore yuan to 6.7602. The yuan is now at its strongest since late July last year.

The dollar index fell by 0.17 percent to 95.37. The index has fallen around 2.2 percent since mid-December on expectations that a slowdown in growth, both in the United States as well as globally, will restrict the Fed from raising rates in 2019.

In 2018, the greenback outperformed its peers, gaining 4.3 percent as the Fed hiked rates four times on the back of a strong domestic economy, falling unemployment and rising wage pressures. This has caused traders to turn bearish on the dollar.

However, few analysts still forecast a rising dollar for this year.

“The Fed Funds Rate is no longer accommodative but neutral, and more importantly, positive in real terms. In line with a more patient Fed, the U.S. dollar’ rise will become gentler,” said Philip Wee, currency strategist at DBS in a note.

The euro gained 0.2 percent to $1.1519, after losing 0.4 percent of its value in the previous session. The single currency has been pressured by a slew of weaker-than-expected economic data, especially from France and Germany.

The European Central Bank is widely expected to remain accommodative in 2019, which should keep a lid on the single currency.

Elsewhere, sterling traded marginally firmer, fetching $1.2752 in early Asian trade with traders focused on the progress of Brexit.

British Prime Minister Theresa May must win a vote in parliament to get her Brexit deal approved or risk seeing Britain’s exit from the European Union descend into chaos. The vote is now due to take place on Jan. 15. The numbers are not in May’s favor and her chances of winning the vote look extremely slim.

The dollar weakened versus the Canadian dollar by 0.17 percent to C$1.3211. The greenback has lost 3.25 percent against the loonie over the last six sessions, with the commodity-linked currency bolstered by a rebound in oil prices.

Here are your income tax changes for 2019 6 Hours Ago | 01:05The IRS said it would also recall a “significant portion” of its workforce, bringing them back to work without pay. But accountants warn that difficult times may still be ahead for taxpayers as the shutdown continues. “It looks like getting the refund will no longer be the issue, but now it’s the lack of support you will get if you try to call — and it will be significant this year,” said Tim Steffen, CPA and director of advanced plann

The IRS said it would also recall a “significant portion” of its workforce, bringing them back to work without pay.

But accountants warn that difficult times may still be ahead for taxpayers as the shutdown continues.

“It looks like getting the refund will no longer be the issue, but now it’s the lack of support you will get if you try to call — and it will be significant this year,” said Tim Steffen, CPA and director of advanced planning at Robert W. Baird & Co.

Here are the hurdles that may stand between you and having your return processed smoothly if the shutdown continues.

Powell’s colleague Raphael Bostic, the Atlanta Fed President, added to the central bank’s dovish tone on Monday. “The Fed is listening to the market and has acknowledged flashing market signs,” said Sim Moh Siong, currency strategist at Bank of Singapore. “U.S. inflation has been well behaved so far and so the Fed does have room to pause on its rate hike cycle,” added Sim. The dollar had gained 4.3 percent in 2018 as the Fed hiked rates four times on the back of a strong domestic economy, fallin

The dollar struggled for traction against its peers on Tuesday, with investors increasingly convinced the Federal Reserve will not raise interest rates this year amid risks of a sharper slowdown in global growth.

The greenback was marginally firmer against the yen, after falling 0.2 percent earlier in the session as traders wagered that the monetary tightening cycle in the world’s largest economy has been halted for the year.

On Friday, Fed Chairman Jerome Powell told the American Economic Association the Fed is not on a preset path of rate hikes and it will be sensitive to the downside risks markets are pricing in.

Powell’s colleague Raphael Bostic, the Atlanta Fed President, added to the central bank’s dovish tone on Monday. Bostic, who is not a voting member of the Federal Open Market Committee this year, said the Fed may only need to raise rates once in 2019.

“The Fed is listening to the market and has acknowledged flashing market signs,” said Sim Moh Siong, currency strategist at Bank of Singapore.

“U.S. inflation has been well behaved so far and so the Fed does have room to pause on its rate hike cycle,” added Sim.

The dollar index was marginally higher, fetching 95.80 at 0244 GMT. Earlier in the session, it had hit an intra-day low of 95.68.

The index has lost around 2 percent since mid-December, and has followed a decline in U.S. bond yields as market participants have grown increasingly confident that the Fed will not hike rates in 2019.

The dollar had gained 4.3 percent in 2018 as the Fed hiked rates four times on the back of a strong domestic economy, falling unemployment and rising wage pressures.

But market expectations for further Fed tightening this year have shifted markedly in the last few months, with some traders now expecting even a rate cut this year.

Financial markets have been rattled by heightened worries about slowing global growth, especially in the United States and China, though data on Friday showed strong U.S. job growth.

Expectations of no further rate hikes this year are likely to keep the greenback under pressure.

The euro was down 0.2 percent at $1.1448, after touching an intra-day high of $1.1485. The single currency has gained around 1.3 percent over the last three trading sessions as the outlook towards the greenback weakened.

The euro’s recent strength has surprised some analysts as growth and inflation remain weak in the eurozone, well below European Central Bank forecasts.

“Having consolidated in a 200-pip range for a large part of the past 2 months, the pair is prime for a breakout,” said Kathy Lien, managing director of currency strategy at BKX Asset Management in a note.

The British pound changed hands at $1.2787, relatively unchanged from its previous close. Traders expect sterling to remain volatile over the next few weeks due to Brexit woes.

Britain’s Prime Minister Theresa May must win a vote in parliament to get her Brexit deal approved or risk seeing Britain’s exit from the European Union descend into chaos. The vote is now due to take place the week beginning Jan. 14.

May’s chances of winning the vote look slim as the DUP, the small Northern Irish party that usually props up her government, is opposed to the deal.

Elsewhere, the Australian dollar was lower by 0.15 percent at $0.7136. Despite its weakness on Tuesday, traders remain positive on the Aussie dollar over the short term.

Sentiment has been buoyed by aggressive stimulus measures in China, Australia’s largest importer of commodities, and also improved prospects for a U.S.-China trade deal.

U.S. Commerce Secretary Wilbur Ross predicted on Monday that Beijing and Washington could reach a trade deal that “we could live with”.

The yen gained 0.3 percent against the dollar to 109.39 in Asian trade. The yen has strengthened for three straight weeks on investors’ lower appetite for risk. Traders expect the single currency to remain under pressure as both growth and inflation in the eurozone remain below the European Central Bank’s expectations. The euro lost 4.4 percent of its value versus the dollar in 2018. Commodity currencies such as the Canadian dollar weakened as oil prices fell on fears of slowing global demand.

Safe-haven currencies such as the yen rose against the dollar on Wednesday, as a cautious mood prevailed on the first trading day of the year on concerns over global growth, the U.S. government shutdown and a slower pace of Federal Reserve rate hikes.

The yen gained 0.3 percent against the dollar to 109.39 in Asian trade. Trading volumes remained light as global markets reopened after the New Year’s Day holiday. Japanese markets remain closed on Wednesday.

The yen has strengthened for three straight weeks on investors’ lower appetite for risk.

“It’s still difficult to be strongly positive given all the uncertainties. Hopefully, there will be progress on trade talks but the market is cautious and that’s benefiting the safe havens such as the yen,” said Sim Moh Siong, currency strategist at Bank of Singapore.

Fears of a global slowdown were aggravated on Wednesday by a survey showing China’s factory activity contracted for the first time in 19 months in December as domestic and export orders continued to weaken.

With business conditions expected to get worse before they get better, China is expected to roll out more support measures in coming months on top of a raft of initiatives in 2018.

“This data confirms our view that the economy is weak and that stimulus needs to arrive quickly,” said analysts at ING in a note.

ING expects the Chinese government to speed up the delivery of infrastructure investment to support the economy, which will mainly be through projects governed by local governments.

The Australian dollar, whose fortunes largely depend on the Chinese economy to which Australia sends a bulk of its commodities, fell 0.5 percent to $0.7016.

The dollar gained 0.05 percent versus the offshore yuan at 6.8681.

While market participants remain concerned about the broader investment outlook, renewed hopes for a resolution to the U.S.-Sino trade dispute have provided some cause for optimism. On Sunday, U.S. President Donald Trump indicated that progress had been made toward a potential settlement of trade tensions which had plagued stock markets for much of 2018.

On Wednesday, the dollar index was relatively unchanged from Monday’s close, fetching 96.17.

Rising interest rates drove the dollar’s outperformance in 2018 with the Fed raising rates four times over the year, as unemployment remained at historically low levels and wage pressures rose.

However, the dollar has been under pressure in recent weeks as investors grow increasingly nervous about a slowdown in the U.S. economy and peak corporate earnings growth.

The U.S. 10-year Treasury yield fell by around 35 basis points over December to 2.69 percent as bond traders bet that the Fed would not be able to raise rates in 2019 due to slowing economic momentum.

The euro slipped 0.16 percent to $1.1446. Traders expect the single currency to remain under pressure as both growth and inflation in the eurozone remain below the European Central Bank’s expectations. The euro lost 4.4 percent of its value versus the dollar in 2018.

Elsewhere, sterling weakened by 0.15 percent to $1.2728. The British pound lost 5.5 percent versus the greenback last year due to Brexit woes.

With three months until the United Kingdom is due to leave the European Union, British Prime Minister Theresa May’s Brexit deal is floundering and traders expect sterling to remain under pressure.

Commodity currencies such as the Canadian dollar weakened as oil prices fell on fears of slowing global demand. The dollar gained 0.07 percent versus the loonie to C$1.3647.

Spot gold was down marginally at $1,259.16 per ounce, as of 0417 GMT, after jumping more than 1 percent in the previous session. “A depreciating dollar coupled with expectations of fewer rate hikes in 2019 remain the primary factors supporting spot gold prices,” said Lukman Otunuga, a research analyst with FXTM. The dollar’s weakness against its Japanese peer has parked gold in “a perfect spot” for investors, Innes added. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, sai

Gold prices steadied on Friday, holding firm near a six-month high struck in the previous session, as the dollar remained under pressure due to a subdued outlook towards U.S. interest rates and the economy, and investors shunned risky assets.

Spot gold was down marginally at $1,259.16 per ounce, as of 0417 GMT, after jumping more than 1 percent in the previous session. The precious metal hit a high of $1,266.4 on Thursday, a level last seen on June 26.

The bullion has gained about 1.7 percent so far this week, in what would be its second weekly gain in three.

U.S. gold futures declined 0.4 percent to $1,263.3 per ounce on Friday.

“The U.S. Federal Reserve’s failure to reassure investors that they understand the risks across global markets is seen fuelling appetite for safe-haven gold in the short- to medium-term.”

The Fed’s commitment on Wednesday to retain the core of its plan to tighten monetary policy, despite rising uncertainty about global economic growth, rattled stock markets and pressured the dollar, making the U.S. currency-denominated gold more appealing for non-U.S. investors.

“Traders expect risk sentiment to remain on very wobbly conditions entering the new year,” said Stephen Innes, APAC trading head at OANDA in Singapore.

The dollar’s weakness against its Japanese peer has parked gold in “a perfect spot” for investors, Innes added.

Global stocks continued their slide on Friday as the threat of a U.S. government shutdown and of further hikes in U.S. borrowing costs fanned investor unease over the economic outlook.

U.S. President Donald Trump’s refusal to sign a legislation to fund the government unless he gets money for a border wall, spooked investors, thus risking a partial federal shutdown on Saturday.

“With volatile equity markets accelerating the flight to safety, gold is likely to remain supported for the rest of 2018,” FXTM’s Otunuga said.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.34 percent to 769.14 tonnes on Thursday.

Among other precious metals, palladium fell 0.3 percent to $1,260.50 per ounce, but was up 2 percent for the week in what would be its fourth consecutive weekly gain.

Silver fell 0.1 percent to $14.75 per ounce, but has gained 1 percent so far in the week.

Platinum fell 0.1 percent to $792.80 per ounce but was headed for its weekly gain for the first time in seven.

French diplomats told Reuters on Wednesday U.S. President Donald Trump’s decision to withdraw all its 2,000 troops from the region had taken Paris by surprise. U.S. officials justified the decision by saying Islamic State had been entirely defeated. “For now, of course we are staying in Syria because the fight against Islamic State is essential.” France is especially sensitive to the Islamic State threat after several major attacks on its soil in recent years. “Islamic State has not been wiped f

French diplomats told Reuters on Wednesday U.S. President Donald Trump’s decision to withdraw all its 2,000 troops from the region had taken Paris by surprise. U.S. officials justified the decision by saying Islamic State had been entirely defeated.

“It shows that we can have different priorities and that we must count on ourselves first,” Europe Minister Nathalie Loiseau told C-News television. “For now, of course we are staying in Syria because the fight against Islamic State is essential.”

France is especially sensitive to the Islamic State threat after several major attacks on its soil in recent years. Hundreds of French nationals have joined the group in Syria.

Defence Minister Florence Parly acknowledged on Twitter that the militant group had been weakened and lost some 90 percent of its territory, but said the battle was not over.

“Islamic State has not been wiped from the map nor have its roots. The last pockets of this terrorist organisation must be defeated militarily once and for all,” she said.

President Emmanuel Macron spoke with Trump on Wednesday, diplomats said. In April, when Trump previously announced a U.S. withdrawal, Macron persuaded the U.S. leader that Washington should stay engaged by citing the threat of Iran in the region.

Time is running out to give your Medicare coverage a checkup and make changes for 2019. The program’s annual enrollment period ends Friday. If you take no action, you’ll automatically remain enrolled in your current plan. However, if you pass on the opportunity to see whether a better option exists, that decision could come with a cost. “You could end up with surprise bills because your providers are no longer participating in your plan or because your medication costs went up,” said Elizabeth G

Time is running out to give your Medicare coverage a checkup and make changes for 2019.

The program’s annual enrollment period ends Friday. If you take no action, you’ll automatically remain enrolled in your current plan.

However, if you pass on the opportunity to see whether a better option exists, that decision could come with a cost.

“You could end up with surprise bills because your providers are no longer participating in your plan or because your medication costs went up,” said Elizabeth Gavino, founder of Lewin & Gavino in New York and an independent broker and general agent for Medicare plans.

The United States might have a new North American trade deal in place, but the Trump administration’s tariffs on steel and aluminum continue to be a headache for businesses, lawmakers and America’s neighbors. Despite expectations to the contrary, the 25 percent tariffs on steel and 10 percent duties on aluminum are staying put for now. Mexico and Canada were initially exempt pending the outcome of the renegotiation of the North American Free Trade Agreement. Speaking to reporters in Buenos Aires

The United States might have a new North American trade deal in place, but the Trump administration’s tariffs on steel and aluminum continue to be a headache for businesses, lawmakers and America’s neighbors.

Despite expectations to the contrary, the 25 percent tariffs on steel and 10 percent duties on aluminum are staying put for now. They remain such a big point of contention that Canadian Prime Minister Justin Trudeau took aim at the tariffs Friday during a signing ceremony for the United States-Mexico-Canada Agreement.

Trudeau tied the tariffs to the layoff plans at General Motors announced earlier this week to the chagrin of leaders and workers in the U.S. and Canada. “Donald, it’s all the more reason why we need to keep working to remove the tariffs on steel and aluminum between our countries,” the Canadian prime minister told U.S. President Donald Trump, who was standing directly to his right.

The tariffs were first put into place on March 23 under the Commerce Department’s rarely used national security authority, known as Section 232 of the Trade Expansion Act of 1962. Mexico and Canada were initially exempt pending the outcome of the renegotiation of the North American Free Trade Agreement. The exemption was removed June 1, however.

Several lawmakers expressed their dismay that the tariffs on our key allies have not been lifted. Sen. Rob Portman, R-Ohio, and Rep. Jackie Walorski, R-Ind., separately said they were “disappointed” there is still no resolution. Sen. Pat Toomey, R-Pa., said the tariffs are “doing more harm than good.” He added that Commerce Secretary Wilbur Ross said over the summer that the tariffs would be lifted as part of the larger trade negotiation.

“Our objective is to have a revitalized NAFTA, a NAFTA that helps America and as part of that the 232s would logically go away both as it relates to Canada and to Mexico,” Ross told the Senate Finance Committee in testimony on June 20.

Speaking to reporters in Buenos Aires, Argentina, U.S. Trade Representative Robert Lighthizer said the tariffs are working, but that negotiations were continuing.

“We want an agreement that is fair to Mexico and fair to Canada but maintains the integrity of the president’s steel and aluminum programs which have been very successful for the U.S.,” he said.